The key technical indicator related to Bitcoin network got tank to the lowest levels as asset shows some of the signs to recover any time soon. However, the risk indicator has also declined to all-time lower level as per the analysis of on-chain analysis. However, indicator follows the tracking of market cycles which have balance of risk-reward relative to conviction and confidence for long-term investors.
At recent levels, even confidence of the hardened holders that appears to get faltering. This has not quite low after 2015 bear market. Also, during 2018 in the bear market with the event of December capitulation. It is the indicator which does not fall to levels at such moment. Here, metric is not yet noted by famous crypto analyst. They have also posted commenting that either one also has indicator that gets broken that zone for high timeframe bottoming.
An overview for Bitcoin capitulating!
The Bitcoin markets also not been across through the recession. One might even declare this later during the month following up two-quarters having the negative GDP figures. Different kind of the metrics like SOPR also known as long-term Spent Output Profit Ratio even have tanked to lows. Such kind of the indicator simply measures realized value of the divided by value at creation of the output. Also, in different words, price sold will get divided by price purchased.
As per the chart, the Bitcoin investors or holders for long term still are selling at a loss that simply suggests capitulation is happening recently.
Prices also have seen range-bound for last three weeks, there by oscillating between high $18,000 zone & also low $22,000 zone. Its realized the price, and aggregate basis of cost for supply.
The key event of capitulation is possibly to send down the prices to almost $12,000 that is 82%+ drawdown. It is also similar to those which observed in last two bearish markets.